Withdrawing Money in Norway before New Year May End Up in Prison

Some people take their assets out of account before the New Year. In January they put it back in the bank. Over the past five years, the tax authorities found over one billion NOK in hidden assets that have been taken out of the bank before the New Year. 

As a result, Norwegian banks started to send warning messages against suspicious monetary transactions in the end of the year, writes Aftenposten. 

– This may end in jail. In the fall of 2012, for example, a taxpayer in Stavanger was sentenced to jail for 60 days in addition to 75,000 NOK monetary fine, says tax director Hans Christian Holte.

To avoid wealth tax, many people think they can hide their wealth by taking out money to keep them under pillow until the beginning of January, and then bring the money back to bank. But banks notify the tax authorities about such suspicious transactions. 

– If we discover that someone takes out a large amount from the bank just before new year and then put it back after new year to evade from capital tax, you run the risk of additional tax and interest in addition to the annual property tax. Additional tax is normally 30 percent, and where there is gross negligence and serious case, we can impose 45 to 60 percent additional tax, says Holte.

– This is a tax planning that can not be recommended. We encourage people to have money in the bank. We focus on this type of transaction, and we follow up the messages we get from banks, says the tax director.

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